My Thoughts On Taking Big Risks
Summary
- I've realized that individuals have varying levels of risk tolerance; despite my public persona, I'm actually quite risk-averse.
- I've deeply considered Warren Buffett's wisdom: "Never risk what you have and need for what you don't have and don't need."
- This quote reminds me to question the purpose of risking essential funds in pursuit of excess wealth that isn't necessary for my well-being.
- It's important for me to assess the value of the risk against the reality of what I truly need versus what's simply nice to have.
Video
How To Take Action
A good way of doing things is to figure out what risks you're okay with taking. See, not everyone can handle the same risks. Although it looks like I'm always taking big chances, I'm not a big risk-taker myself. Think about what you really need to be happy and safe. Don't go after more money if it means losing what you need right now. Here's how you can make decisions that protect you:
- Write Down What You Truly Need: Start by listing the things you can’t live without – these are your needs. This list will help you know what not to risk.
- Separate Needs from Wants: Make another list of things you want but don’t need. It’s okay to aim for these, but not if it means risking your needs.
- Assess Potential Risks: For every opportunity that comes up, ask yourself, “Am I risking a need for a want?” If the answer is yes, think twice.
- Make Careful Choices: If you're considering a new investment or business idea, think about the worst-case scenario. If you’d still be okay, then maybe it's worth a shot.
- Set Money Aside for Emergencies: Always have a safety net, like savings, so you're not stuck if something goes wrong.
- Think Long Term: Focus on steady growth rather than quick wins. Quick wins may seem tempting, but they often come with bigger risks.
By doing these steps, you keep you and your business safe. You’ll be able to grow without making big gambles that could hurt you in the long run. Always remember: protect what you need before chasing what you want.
Quotes by Alex Hormozi
"people have different risk tolerances"
– Alex Hormozi
"I'm actually pretty risk reverse"
– Alex Hormozi
"never risk what you have in Need For What you don't have and don't need"
– Alex Hormozi
"I've really taken to Heart what baren Buffett said"
– Alex Hormozi
"I want to risk this money that I need to make more money so that I can have more money that I don't need"
– Alex Hormozi
Full Transcript
people have different risk tolerances I'm actually pretty risk reverse people don't think that because of my like Persona I've really taken to Heart what baren Buffett said which is never risk what you have in Need For What you don't have and don't need I think about that a lot it's like for what like I want to risk this money that I need to make more money so that I can have more money that I don't need
